Skift Take

The UK companies want their taxes to be on par with Italy and Spain, but will have a tough time convincing Parliament to make any decisions that might lead to a fate similar to those of the bankrupt governments.

— Samantha Shankman

A group representing nearly 400 hospitality businesses, largely in the hotel and leisure sector, have launched its official campaign to cut VAT on accommodation and attractions to just 5% in Parliament.

Create a net present value fiscal return to the Exchequer over 10 years of £2.6b (2011 prices)

Assuming VAT were to reduce in 2013, the first year would see a direct loss to the Exchequer in VAT revenue of £1.7b, but the notional loss would be lower at £232m, after the effect increased trade and employment were taken into effect.